Whether it’s the state of the economy or because you just don’t get around to using your vacatin home a lot, you may find yourself thinking for the first time about renting out your vacation home.

 

lots of consumers who already own and are looking to start renting  should follow these guide lines. The financial benefits  can be good and with thorough preparation, the process usually runs surprisingly smoothly.

Five things to know about getting ready to rent out your vacation home:

1. Find out if there are any legal prohibitions or restrictions on short-term rentals.

You’ll definitely have to check with your city government.  Some towns may limit the number of weeks per year you can have short-term renters, and some of them may charge special taxes. Some towns limit the number of unrelated adults who might occupy a dwelling, she said. The same questions need to be asked of your condo or co-op board or homeowners association,

Some  markets will require you to have a business license and collect sales tax, a tourism tax, a bed tax, etc.

2. Get the place ready.

You’ll have to depersonalize it a bit and you’re going to have to take the toothbrushes out of the bathroom, sort out your closets, get the drawers cleaned out, remove family pictures, and clear out the refrigerator. Anything you leave will be considered fair game for renters to use.

HomeAway.com and other rental sites provide checklists of furnishings and implements needed for renters’ use.

You want to double what you ‘sleep, if your place sleeps six, you want 12 forks, 12 knives, etc.

Plan on a certain amount of wear and tear, replaces towels annually, get good, fluffy ones. Renters expect good quality. The sofa might need to be swapped out every 2 1/2 years.

3. Some financial considerations:

Decide on the rental amount by checking for comparable rentals on the Web or by calling local property managers. Typically, managers who provide rental services will charge the owner a percentage of the rent.

The size of rental deposit can be a sticky issue,  for new people who are renting: take $200, or 10 percent of the rental cost.”

A housekeeper who will come in between rentals is a must,  that’s the most difficult part of starting to rent.  The homeowner needs to find someone who’s reliable and can report on the condition on the place between renters.

When mechanical problems arise, sometimes the solution is as easy as dialing for a local plumber or heating contractor.   Some homeowners prefer to contract with a maintenance company to be on call, handle yard work, etc.

4. The property must be marketed properly, whether you’re handling the rentals yourself or using a professional company,

Would-be renters want information about nearby transportation, shopping, entertainment, beaches, skiing, etc.

They also want to see photos of the place.   The photos should include an exterior view, and if there’s a scenic view, include it.   They’re also concerned about seeing adequate seating in the living room, the comfy-ness of the master bedroom and additional bedrooms, and the workability of the kitchen.

5. How to screen the renters?

The Internet is a great starting point for finding renters, but the phone is a must many agencies say.

Ask them why they’re coming to the area, and (if) they’ve ever been in a vacation rental.  If not, then it is good to go through a few more things. They might not realize the nuances of staying in a vacation rental that are going to be a bit different, such as the cancellation policy, and that there’s nobody on the premises to field questions.